TELECOM ITALIA SUCCESSFULLY CLOSES 850 MILLION EURO
3-YEAR BOND ISSUE
The operation contributes to the reduction of the average cost of Group debt
Telecom Italia today successfully closed a 850 million euro floating rate bond issue with maturity in June 2010.
With this new operation, Telecom Italia takes advantage of a favourable moment in the market to refinance maturing debt and thus reduce its average cost.
The terms of the issue are as follows:
• issuer: Telecom Italia S.p.A.
• amount: 850 million euro
• issue date: 7 June 2007
• maturity: 7 June 2010
• duration: 3 years
• coupon: Euribor +0.20% payable quarterly
• issue price: 99.915%
• effective yield at maturity: Euribor 3 month +0.23%
The operation is part of Telecom Italia’s 15 billion euro Euro Medium Term Note (EMTN) programme.
The issue will be quoted on the Luxembourg stock exchange.
The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Milan, 29 May 2007